Certificates of sale for all unpaid real estate taxes in Duval County will be available for sale to the public May 30, generating revenue for the City and a potential return on investment for opportunists.
“You’re making the government whole,” said Tax Collector Michael Corrigan. “This guarantees that revenue comes in.”
As of today’s advertisement in the Daily Record, 41,065 properties — comprising residential, commercial and industrial sites — have unpaid taxes.
That figure will likely drop 20 to 25 percent before the sale, said Alvin Crooms, an assistant to tax collector.
Those who do not pay their property taxes by the start of the 9 a.m. sale May 30 will have tax lien certificates sold online to the public, at cost plus interest of up to 18 percent.
Instead of bidding on the actual price of the certificate like an auction, bidders compete by lowering the interest rate on a particular certificate.
Crooms said he has seen interest levels decline to 0.25 percent.
Last year’s sale had 41,618 properties and netted $65 million. This year’s sale has 41,065 for $78 million.
“We’ll keep getting payments all the way until the sale. The closer it gets, the more accelerated they get,” Corrigan said.
During the sale, 98 to 99 percent of the certificates will be sold, with the remaining returned to the county and still available for sale.
Corrigan said that property owners who see their names listed in the advertisements sometimes become confused that their property is slated to be sold.
That won’t be the case until April 1, 2014, when certificate holders of the delinquent property could acquire the deed if taxes have still yet to be paid.
Up until about five years ago, the tax certificate sale would be held at the courthouse and could take up to six days, Crooms said.
He said with the sale entirely online now, it takes a day.
The sale will be held at duvaltaxsale.com, where bidders will have to register and can find information about the event. According to the site, bidders also will have to determine how much they plan to spend during the sale and make a deposit of 10 percent that amount, which must be submitted before deadline in order for bids to be valid.
Information about the properties will be available online by May 21. Those interested can then research the properties listed from all over the city.
For the City, the tax certificate sale is a way to “keep the government moving” when not all tax payments are in, Corrigan said. For investors, both individuals and companies, the sale is a way to earn revenue, too.
As for delinquent taxpayers, the transaction will cost them more but also highlights the importance of punctual payments, Corrigan said.
“It’s much more efficient for the taxpayers to pay their taxes on time,” Corrigan said.
356-2466
Example:
• Person A owns a piece of property and owes $1,000 in property taxes to the City. He has not paid those taxes by May 30.
• On May 30, a tax lien certificate on those unpaid taxes is available for sale online for the amount owed, in this case $1,000.
• Person B bids against other bidders to buy the certificate for $1,000 plus interest up to 18 percent. The bidder with the lowest interest rate can buy the certificate. During the open bidding, Person B bids an interest rate of 5 percent and is the lowest bidder.
• Person B pays the City $1,000 and holds the certificate.
• Person A later pays $1,000 to the Tax Collector plus the 5 percent interest.
• The City pays person B the $1,000 plus the 5 percent interest.
• If Person A does not pay the taxes and interest by April 1, 2014, Person B can ask for the deed to the property to be placed for sale at public auction. By doing so, Person B assumes responsibility for back taxes and can bid on the property.
View the 2011 Delinquent Real Estate Tax List at jaxdailyrecord.com